Court inquiry targets Parliament expenses

Date: 03/07/1997

By Rory Watson

THE Court of Auditors has launched an investigation into MEPs' expenses as outside pressure grows on the European Parliament to stamp out abuses of its generous system of travel and daily allowances.

News of the financial watchdog's inquiry comes as Parliament President José María Gil-Robles and senior colleagues prepare to meet next week to consider a package of reforms including the introduction of random checks on MEPs' travel expenses claims, with each of the 626 members coming under scrutiny at least once a year.

Pressure for reform is also coming from EU Ombudsman Jacob Söderman, who has given the institution until the end of the month to respond to complaints from the public about the present arrangements.

The Court of Auditors' inquiry into the Parliament's 48-million-ecu travel and subsistence budget, which began several weeks ago, is shrouded in secrecy.

But the Ombudsman's office confirmed this week that he had received four complaints alleging maladministration, two from the UK and one each from Denmark and Sweden.

Both investigations come amid increasing criticism of the fact that MEPs are not required to provide receipts to back travel expense claims or do more than sign a daily register in order to receive per diem allowances for attending meetings in Strasbourg, Brussels or Luxembourg.

“If the European Parliament does not change the rules now, then someone else will and that could be the Court of Auditors or the Ombudsman,” warned Finnish Green MEP Heidi Hautala.

When they meet in Luxembourg next Thursday (10 July), senior parliamentarians will decide whether to endorse proposals already examined by a small working group of MEPs set up after Gil-Robles' predecessor Klaus Hänsch insisted on reform.

Under the plan, reimbursement for travel from home to a parliamentary meeting would be determined either by the price of a business fare, plus 15&percent; for ancillary costs, or by a reformed version of the current kilometre allowance. Under the second option, standard rates would be reduced for longer journeys.

MEPs would also have to produce boarding cards to prove the journey had been made and would be subject to random checks.

But those who favour more radical reforms argue that this alone would not be enough to meet public concern that MEPs might be profiting from the system. “Evidence suggests that very few people are claiming a travel allowance without travelling. The problem is that the rewards are way out of line with the costs. There is a complete discrepancy between reward and effort,” complained one senior MEP.

Critics claim the existing kilometre formula makes it possible for members from the Union's peripheral countries, such as Greece, to travel economy class but legitimately to claim up to six times the actual cost of their fare.

In a bid to prevent abuse of the per diem allowances, MEPs would not only have to sign a central register every day when attending meetings in Brussels, but would also have to participate in roll-call votes during plenary sessions in Strasbourg.

Hautala, a member of the working group, firmly believes the changes are not radical enough. She also fears that the Parliament may use its campaign to establish a uniform statute for all MEPs as an excuse to delay reform of the allowances system.

But a spokesman for Gil-Robles this week firmly denied any suggestion of foot-dragging. “There is a link between the two objectives, but we can approach them separately step by step. Before the statute can be agreed, the new Treaty of Amsterdam must first be ratified, but the Parliament can introduce its own internal budgetary reforms before then,” he said.